Company XYZ made total contribution margin of $500,000 and a net income of $120,000. The company also made a total gross margin of $390,000. Assume that the variable selling and administrative expenses were $160,000, how much is the fixed manufacturing cost ($)? O a. 270,000 O b. 110,000 O c. 380,000 O d. None of the given answers O e. 270,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Company XYZ made total contribution margin of $500,000 and a net income of
$120,000. The company also made a total gross margin of $390,000. Assume that the
variable selling and administrative expenses were $160,000, how much is the fixed
manufacturing cost ($)?
O a. 270,000
Ob. 110,000
O c. 380,000
O d. None of the given answers
O e.
270,000
A Company uses job order costing and has chosen direct labor hours to allocate its
manufacturing overhead. The company estimates that total direct labor hours to be
operated next year are 250,000 hours. The estimated variable overhead is $15 per hour
torminod orerhead rate](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff31dc5ff-d295-47d3-a738-cb9f888d11a0%2Fb5125567-92fd-4a4a-93e5-63df65d4f7ac%2Fvt86lh_processed.jpeg&w=3840&q=75)
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